Deutsche Bank Profit Plummets 92% Despite Revenue Growth

Deutsche Bank's fourth-quarter profit dropped 92% to €106 million, overshadowed by a significant previous year's adjustment. However, revenues rose 8% to €7.2 billion, which is the highest since 2014, boosting investor outlook.

Date: 30-01-2025

AI Rating: 5

Earnings Per Share (EPS):

EPS information is not directly provided in the report. However, the planned dividends for fiscal 2024 are projected at €1.3 billion, equating to €0.68 per share, which is an increase of 50% from the previous year. This indicated commitment to returning value to shareholders could positively influence stock valuation.

Revenue Growth:

Deutsche Bank reported revenues of €7.2 billion for the fourth quarter, which is an 8% increase year-over-year and the highest quarterly revenue since 2014. This growth may positively impact investor sentiment, as it signifies a recovery and upward trajectory for the company's earnings potential.

Net Income:

The net income attributable to shareholders dropped dramatically by 92% to €106 million from €1.26 billion in the prior year. This sharp decline in profit is detrimental and signals a potential concern for investors regarding profitability sustainability.

Profit Margins:

Profit before tax decreased by 17% to €583 million. The decline in profit margins highlights potential challenges for the bank in maintaining strong profitability.

Free Cash Flow (FCF):

No specific information about free cash flow was provided in the report.

Return on Equity (ROE):

Details on return on equity were not mentioned, thus preventing analysis in this area.

Despite the substantial fall in profit, the revenue growth and future capital distributions signal potential resilience and positive outlook for Deutsche Bank. Investors may need to weigh the mixed signals carefully when considering their positions.

Stocks: DB